In a June 29 news release, Park Lawn Corp. confirmed — in response to industry media rumors — that it has submitted a preliminary all cash proposal to the board of directors of Carriage Services to purchase all of the outstanding stock of Carriage.
The proposal was made confidentially and subject to the completion of satisfactory due diligence and the negotiation and execution of a mutually satisfactory definitive acquisition agreement.
Park Lawn takes a disciplined approach to acquisitions with clearly defined strategic and financial criteria, and is committed to maintaining a prudent capital structure. Park Lawn has partnered with a large private equity firm and does not anticipate that it would require any public equity financing to complete such a transaction and that any such transaction would be accretive to Park Lawn’s earnings on a fully diluted basis.
There can be no assurance that Park Lawn’s proposal will result in a definitive agreement, or that the proposed transaction or any other transaction will be approved or consummated. Park Lawn does not intend on commenting on the proposal or further developments regarding the proposal unless it deems further disclosure is appropriate or required.
Carriage Services Also Issues Statement
Also on June 29, Carriage Services issued its own statement, announcing that its board of directors has initiated a process to explore potential strategic alternatives, possibly including a sale, merger or other potential strategic or financial transaction, to maximize shareholder value.
“There can be no assurance that this process will result in a transaction or, if a transaction does occur, the timing of any such transaction. The company does not intend to comment further on this process unless there are material developments to report,” the statement reads.
Lazard is serving as financial advisor and Sidley Austin LLP is serving as legal advisor to Carriage Services.
Immediately after the above news broke, Carriage Services stock shot up at one point to over $35.50 per share, or more than 25%.
There has been some other big news at Carriage Services recently: Earlier, FuneralVision.com reported that Carlos R. Quezada has been named CEO of the company.